WTI Crude Oil Prices Drop to Nearly One-Month Lows of $82.00 Amid Easing Middle East Tensions and Hawkish Fed
The Western Texas Intermediate (WTI) crude oil benchmark experienced a decline to nearly one-month lows of $82.00 on Tuesday as concerns about a wider conflict in the Middle East subsided. The easing tensions between Israel and Iran have limited the downside for WTI prices, with Iranian Foreign Minister Hossein Amirabdollahian stating that Iran does not plan to respond to Israel’s retaliatory strike.
The recent build in US crude oil inventories has also weighed on WTI prices, surpassing expectations and exerting downward pressure on the black gold. Additionally, hawkish remarks from the Federal Reserve (Fed) have led to a strong US Dollar (USD), making oil more expensive for holders of other currencies.
Despite these challenges, hope for Chinese demand offers some relief to WTI prices, as China remains the world’s biggest oil importer. The Chinese government’s fiscal and monetary stimulus measures aim to boost the economy, with ANZ economists forecasting a growth rate of 4.9% in 2024. However, the fragile Chinese property sector continues to be a major drag on the economy, and any negative signs could impact WTI prices.
Oil traders will be closely monitoring the preliminary US S&P Global Purchasing Managers Index (PMI) data for April and the API Weekly Crude Oil Stock report for further insights into the market. The evolving situation in the Middle East and the Fed’s monetary policy decisions will continue to influence WTI prices in the coming days.
Source: https://www.fxstreet.com/news/wti-holds-below-8200-on-easing-middle-east-tensions-hawkish-fed-202404230023
